This paper looks at the e¤ect of credit constraints on skill acquisition when agents have heterogeneous abilities and wealth. We use a general equilibrium model and assume credit markets are absent. Two payment systems for training are explored. Under the …rst, payment is made up front and as a result, credit constraints are severe. In the second, a form of work study is allowed, and this helps...

In this paper constraints on technology choice and credit access are introduced into the Melitz (2003) model in a dynamic setting in order to explain the factors that limit the benefits to a firm from trade liberalization. Theoretical analysis shows that firms face credit constraints depending on their initial productivity and the cost of the credit. As a result, credit constrained firms may ne...

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We present the multi-factor quadratic reduced form model for pricing of credit risky securities. We use quadratic Gaussian processes to model the short term interest rate and the intensity of default showing that we get tractable formulas for the price of credit default swaps and credit default swaptions.

We study an equilibrium model for the pricing of a defaultable zero coupon bond issued by a firm in the framework of Back [2]. The market consists of a risk-neutral informed agent, noise traders and a market maker who sets the price using the total order. When the insider does not trade, the default time possesses a default intensity in market’s view as in reduced-form credit risk models. Howev...

a r t i c l e i n f o The optimal replenishment policy for an economic production quantity (EPQ)-based inventory model with nonconforming items and breakdown is presented. A real-life production system inevitably generates nonconforming items and has equipment breakdowns owing to process deterioration or other uncontrollable factors. This study addressed these issues in an EPQ-based system to o...

The paper examines the causal nexus between financial development and economic growth in India in a multivariate VAR model. The empirical analysis is based on cointegration and causality test. The cointegration test finds the presence of long run equilibrium relationship between financial development and economic growth. The Granger causality test finds the existence of bidirectional causality ...

Presently in the commercial environment, because of high level market globalization and rapid increase industrialization, supply chain synchronization is playing an increasingly significant role proper management whole system including several factors at same time. In real business world, both manufacturer retailer accept credit to make their position strong, as not only strengthens relationshi...

In this paper we present a model for the valuation, optimization, market and credit risk management of natural gas storage facilities and associated derivative contracts. A reduced form Markovian term structure model for the gas forward curve is developed and is shown to describe over 98% of the total historical variation of the fluctuations of the Henry Hub Futures curve. This approach facilit...